Quiz 1 Chapters 1-5

d. scarce for bouseholds and scarce for economies

Resources are Select one: a. plentiful for households but scarce for economies b. plentiful for households and plentiful for economies c. scarce for households but plentiful for economies d. scarce for bouseholds and scarce for economies

Not d

Demand is said to be price elastic if Select one: a. demand shifts substantially when income or the expected future price of the good changes b. buyers respond substantially to changes in the price of the good c. the price of the good responds substantially to changes in demand d. buyers do not respond much to changes in the price of the good

d. used to produce goods and services

Factors of Production Select one: a. abundant in most economies b. assumed to be owned by firms in the circular flow diagram c. also called outputs d. used to produce goods and services

c. both buyers and sellers

In a competitive market, the quantity of a product produced and the price of the product are determined by Select one: a. buyers b. sellers c. both buyers and sellers d. none of the above is correct

a. decreae the price charged to vacationers and increase the price charged to business travelers

Suppose an airline determines that its customers traveling for business have inelastics demand and its customers traveling for vacations have an elastic demand. If the airline's objective is to increase total revenue, it should Select one: a. decreae the price charged to vacationers and increase the price charged to business travelers b. increase the price charged to vacationers and decrease the price charged to business travelers c. decrease the price to both groups of customers d. increase the price to both groups of customers

a. the value of the best opportunity a student gives up to attend college

The opportunity cost of going to college is Select one: a. the value of the best opportunity a student gives up to attend college b. zero, since a college education will allow a student to earn a larger income after graduation. c. zero for students who are fortunate enough to have all of their college expenses paid by someone else. d. the total spent on food, clothing, books, transportation, tuition, lodging, and other expenses

. the combinations of output that an economy can produce

The production possibilities frontier illustrates Select one: a. all of the above are correct b. the combinations of output that an economy should produce c. the combinations of output that an economy should consume d. the combinations of output that an economy can produce

d. absolute advantage is the driving force of specialization

Which of the following statements is NOT correct? Select one: a. Trade has the potential to benefit all nations b. Trade allows for specialization c. Trade allows countries to consume outside of their production possibilties curves d. absolute advantage is the driving force of specialization

b. when the price of a good decreases, buyers purchase more of a good

Which of these statements best represents the law of demand? Select one: a. when buyers' demand for a good increases, the price of the good increases b. when the price of a good decreases, buyers purchase more of a good c. when buyers' taste for a good increase, they purchase more of the good d. when income levels increase, buyers purchase more of most goods

c. households and firms

Which two groups of decision makers are included in the circular flow diagram? Select one: a. markets and government b. households and government c. households and firms d. firms and government